The full extent of the economic impact of Friday’s earthquake and tsunami in Japan is not yet clear, but some experts say it could be the most expensive in history.
Hundreds of factories across Japan, including carmakers Toyota and Nissan, are closed as a result of damage or power outages. Energy providers are warning of blackouts throughout the country in the coming days, because they are unable to meet the demand.
Thousands of homes have been destroyed. About two million are left without electricity and water.
A U.S.-based consulting group, AIR Worldwide, said Sunday that insured property loses from the earthquake alone could be between $15 billion and $35 billion.
Risk consultancy Equecat has estimated that the economic cost from the 8.9-magnitude earthquake will total more than $100 billion. That estimate does not include the cost of the clean-up and long-term monitoring of nuclear reactors for radiation leaks.
The Bank of Japan said Monday it will inject $86 billion into the financial system to help stabilize the country’s export-led economy.
The 1995 earthquake in Kobe was one of the world’s most expensive natural disasters. It killed more than 6,000 people and caused more than $132 billion worth of damage.
